Professional Documents
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Bharti Airtel LTD (Marketing Strategies)
Bharti Airtel LTD (Marketing Strategies)
Bharti Airtel LTD (Marketing Strategies)
1.
2.
COMPANY PROFILE
3.
COMPANY HISTORY
ORGANISATIONAL STRUCTURE
SERVICES PROVIDED BY COMPANY
AREA OF OPERATION
MERGERS,ACCQUISITIONS AND JOINT VENTURES
4.
5.
CONCLUSION
6.
BIBLIOGRAPHY
2. Pricing Strategy :- A firm must decide about pricing strategy. While fixing
prices , a firm may consider several factors such as cost of product, demand for
product, competition in the market, the nature of the product, the nature of the
consumers, objective of the firm, etc. There are several pricing strategies such
as
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skimming where high prices are charged and there is heavy promotion.
Or Slow skimming where high process is charged and there is low
promotion.
Penetration pricing strategy- in this case , low prices are charged , in
order to capture a good market share. A firm may follow either Rapid
penetration where low prices are charged and there is heavy
penetration or Slow penetration where Low prices are charged and
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people, etc.
Personal Selling Strategy It plays an important role in promoting the
sale of products, especially in the case of industrial goods. Therefore,
proper decision must be taken in respect of :
a) The number of sales force, selection and training.
b) The compensation to the sales force.
c) The product, which require personal selling efforts.
d) The market or area where personal selling is required, etc.
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first telecom company to cross the 2-million mobile subscriber mark. Bharti also
brought down the STD/ISD cellular rates in India under brand name 'India one'.
In 1999, Bharti Enterprises acquired control of JT Holdings, and extended cellular
operations to Karnataka and Andhra Pradesh. In 2000, Bharti acquired control of
Skycell Communications, in Chennai. In 2001, the company acquired control of Spice
Cell in Calcutta. Bharti Enterprises went public in 2002, and the company was listed
on Bombay Stock Exchange and National Stock Exchange of India. In 2003,
the cellular phone operations were rebranded under the single Airtel brand. In 2004,
Bharti acquired control of Hexacom and entered Rajasthan. In 2005, Bharti extended
its network to Andaman and Nicobar. This expansion allowed it to offer voice services
all across India. Airtel launched "Hello Tunes", a Caller ring back tone service
(CRBT), in July 2004 becoming to the first operator in India to do so. The Airtel
theme song, composed by A.R. Rahman, was the most popular tune on that year. In
May 2008, it emerged that Airtel was exploring the possibility of buying the MTN
Group, a South Africa-based telecommunications company with coverage in 21
countries in Africa and the Middle East. The Financial Times reported that Bharti was
considering offering US$45 billion for a 100% stake in MTN, which would be the
largest overseas acquisition ever by an Indian firm.. However, the talks fell apart
as MTN group tried to reverse the negotiations by making Bharti almost
a subsidiary of the new company. In May 2009, Bharti Airtel again confirmed that it
was in talks with MTN and the companies agreed to discuss the potential transaction
exclusively by 31 July 2009. Talks eventually ended without agreement, some sources
stating that this was due to opposition from the South African government.
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In 2009, Bharti negotiated for its strategic partner Alcatel-Lucent to manage the
network infrastructure for the fixed line business. Later, Bharti Airtel awarded the
three-year contract to Alcatel-Lucent for setting up an Internet Protocol access
network across the country. This would help consumers access internet at faster
speed and high quality internet browsing on mobile handsets. In 2009, Airtel launched
its first international mobile network in SriLanka. In June 2010, Bharti acquired the
African business of Zain Telecom for $10.7 billion making it the largest ever
acquisition by an Indian telecom firm. In 2012, Bharti tied up with Wal-Mart, the US
retail giant, to start a number of retail stores across India. In 2014, Bharti planned to
acquire Loop Mobile for INR 7 billion, but the deal was called off later.
ORGANISATIONAL STRUCTURE
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In India, the company's offers products and services both for the end consumer as well
as for businesses. The consumer business offers 2G, 3G and 4G wireless services,
mobile commerce, fixed line services, high speed DSL broadband, IPTV and Digital
TV. The enterprise services include national & international long distance services to
large enterprises and carriers and tower infrastructure services.
One Network:- One Network is a mobile phone network that allows
Airtel customers to use the service in a number of countries at the
same price as their home network. Customers can place outgoing
calls at the same rate as their local network, and incoming calls are
free. As of 2014, the service is available in Bangladesh, Burkina
Faso, Chad, Democratic Republic of Congo, Congo Brazzaville,
Gabon, Ghana, India, Kenya, Madagascar, Niger, Nigeria, Rwanda,
Seychelles, Sierra Leone, Sri Lanka, Tanzania, Uganda and Zambia.
B2C Services
Mobile Services
Cellular mobile services across 20* countries.
Customer and revenue market leader in India.
Telemedia Services
Offers fixed telephony and broadband internet (DSL + IPTV).
Services provided across 87* countries.
Digital TV Services
Pan India DTH operations.
Coverage across 639* districts.
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facility.
Data Conferencing :- Involves PC based applications, e.g. transfer files to
multiple users, collaborate on a white board, share an application, etc.
Sharing :- End users can share their desktops, any application or web browser.
Upload Facility :- PowerPoint presentations can be dynamically uploaded and
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the conference. This feature is also used when a participant leaves the
conference.
Lock/ Unlock Option for Moderator :- When the moderator locks a call, the
operator is locked out and participants dialing in later are not allowed to enter
the conference. The moderator can unlock the call at any time during the
conference.
Entry/ Exit Tones:-Whenever a caller enters/ exits a conference, for security
and control reasons, a tone will be generated.
hours.
Reduces costs thus creating competitive advantage.
Quick decision making and faster time to market for new products.
Free from location/ physical constraints.
services.
Sales and Marketing:- Get regular updates and sales progress from the sales
training modules.
Project Applications:- Recurring project team meetings can be held without
financial budgets.
Legal Applications:- Use video conferencing for negotiation or amendment of
contracts with overseas business associates or customers.
AREA OF OPERATION
Domestic Operations
Airtel is the largest provider of mobile telephony and second largest provider of fixed
telephony in India, and is also a provider of broadband and subscription
television services. It offers its telecom services under the "airtel" brand, and is
headed by Sunil Bharti Mittal.
International Operations
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the world in the Business Week IT 100 list 2007, and voted as
India's most innovative company in a survey by The Wall
Street Journal.
Airtel Lanka commenced commercial operations of services on
13 January 2009. Granted a license in 2007 in accordance with
the Sri Lanka Telecommunications Act No. 25 of 1991, it is also
a registered company under the Board of Investment Sri
Lanka. Under the license, the company provides digital mobile
services to Sri Lanka. This is inclusive of voice telephony,
voice mail, data services and GSM-based services. All of these
services are provided under the airtel brand.
Subscriber Base
Bharti Airtel has about 303.08 million subscribers worldwide264.58 million in
India and South Asia and 50.949 million in Africa as of the end of December 2011.
The numbers include mobile services subscribers in 19 countries and Indian
Telemedia services and Digital services subscribers.
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MTN Group merger negotiations :-In May 2008, it emerged that Airtel was
exploring the possibility of buying the MTN Group, a South Africa-based
telecommunications company with operations in 21 countries in Africa and
the Middle East. The Financial Times reported that Bharti was considering
offering US$45 billion for a 100% stake in MTN, which would be the largest
overseas acquisition ever by an Indian firm. However, both sides emphasized
the tentative nature of the talks. The Economist magazine noted, "If anything,
Bharti would be marrying up", as MTN had more subscribers, higher
revenues and broader geographic coverage. However, the talks fell apart as
MTN Group tried to reverse the negotiations by making Bharti almost a
subsidiary of the new company.
In May 2009, Airtel confirmed that it was again in talks with MTN and both
companies agreed to discuss the potential transaction exclusively by 31 July
2009. Airtel said in a statement "Bharti Airtel Ltd is pleased to announce that
it has renewed its effort for a significant partnership with MTN Group. The
exclusivity period was extended twice up to 30 September 2009. Talks
eventually ended without agreement.
A solution was proposed where the new company would be listed on 2 stock
exchanges, one in South Africa and one in India. However, dual-listing of
companies is not permitted by Indian law.
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Airtel uses mix of segmentation strategies to segment its offerings like basic Call
/SMS plans, prepaid / Post-paid plans, VAS Data, caller tunes etc. Apart from
geographically segmenting the market in East, West, North, South & central, the
market is also segmented in each region on the basis of demographic variables like
age, Income, Social groups. Different geographic regions are handled independently
and different campaigns are run according to the preferences of people in each region.
Airtel has targeted the generation Z of 15-25 ages, generation X & baby Boomers by
using different campaigns over the period of time i.e. campaign like Har Ek friend
Zaruri hota hai/ Jo tera hai wo mera hai to target Gen Z and recently launched
campaign of one touch internet targeting Gen X & baby boomers. Airtel has been
successful in top-of-the-mind recall amongst cellular phone users and is enjoying a
leadership position in most markets. After changing its logo it has repositioned itself
as Young, Energetic & International brand. It has evolved itself as a torch bearer of
the telecom industry in India. Airtel has extended its infrastructure in the extreme
parts of the country for nationwide penetration, creating competitive edge over other
players in terms of low operational cost, better network connectivity, coverage, low
call drops & better customer service. Airtel developed a sustainable advantage
through its excellent network of telecom towers. In many locations, newer entrants
found it cheaper to rent Airtels existing infrastructure rather than setup new towers.
Also spending extensively on advertising & promotions helped it to become a market
leader. Word of mouth is one of the strongest forms of promotions & Airtel has
completely leveraged that. Airtel is always known for its innovation and some of its
products were the lifetime prepaid, Airtel live, Hello tunes, My Plans, M-check are
pioneer strategies & the list is never ending.
The aim is to highlight the rebranding and constant repositioning done by Airtel.
Airtel has undergone a very huge rebranding which has cost millions to the company.
The aim is to highlight how it has impacted Airtel. Airtel despite being the number
one company (with widest consumer base and largest market presence) has been
constantly rebranding and repositioning itself. Airtel is the number one telecom
service provider in India, its the only service provider which has its presence in all
the telecom service circles of India. Even then it changes its logo, jingle and tagline
very regularly. And it has managed to maintain its top position. Hence I wish to
present the strategy implemented by Airtel. Airtel has been constantly repositioning
itself. Their target customer base has been increasing to cover different segments
whether its youth or senior citizens, urban or rural customers they have specialized
packages for all. Airtel has spent lots of money in revamping the brand in order to
appeal all segments of market. The rebranding of Airtel in November 2010, has
worked in favor of Airtel. Airtel is a unique case as despite being the top company in
the Indian telecom circle (with widest consumer base and presence across all the
telecom circles of India). Airtel has an emotional connect with its customers. Airtel
has invested lots of money in constantly changing itself to suit the different
requirements of its customers and adapting itself to the changing environment. Airtel
was born free, a force unleashed into the market with a relentless and unwavering
determination to succeed. A spirit charged with energy, creativity and a team driven
to seize the day with an ambition to become the most globally admired telecom
service. Airtel is a JV between SingTel, (Singapore, Telecom Italia, Italy), and Bharti
Telecom. Airtel has not changed the brand name despite the various rebranding.
Initial Branding -
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Initially, the target group was elite professionals since tariff rates were high. Airtel
positioned itself as an inspirational and lifestyle brand. It was pitched not merely as a
mobile service, but as something that gave consumer a badge value. The Brand was
developed to connote leadership in network, innovations, offerings and services. The
taglines like "Airtel celebrates the spirit of leadership" and "The first choice of the
corporate leaders" emphasized that stance. The Leadership campaign was reportedly
successful.
new Tagline.
Airtel started talking to new segments by positively positioning and
segments.
The advertising became two-pronged: a product-driven communication
that showcased new offerings like the Magic prepaid card, and an
emotional communication to connect with younger people.
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could identify".
To justify this tagline Airtel comes up with an ad commercial (Barriers
break when people talk) which becomes popular among the people.
Brand Logo
1. Airtel started talking to new segments by positively positioning and
establishing itself as a brand that improved the quality of life. New look
and the feel of the brand indicated the core values of the brand i.e.
leadership, performance and dynamism.
The logo was black, uppercase bold lettering; and the baseline was "the
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2. Airtel changed its logo, the new look and feel of the brand signify the core
values of the Airtel brand accompanied by a set of supportive variables
like courtesy, politeness and efficiency.
Change from BLACK to Dark Red Background is to refresh the brand and
It had two solid, red rectangular forms whose counter forms create an open
doorway.
Capital A showed leadership and red dot on i showed innovation.
As it is seen from the secondary data and primary data that there was no
4. Airtel came up with a new logo. The new logo was supposed to give Airtel
and the brand a more youthful and international" look.
background.
The unique symbol is an interpretation of the a in Airtel.
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The curved shape and the gentle highlights on the red color make it warm
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It involves creating huge brand equity for a single brand, and thereafter leveraging
that over multiple products. On the flipside, bad reputation of any one product, may
affect the equity of all the other products using the same brand name.
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Co-Branding Strategy
Airtel made partnership with brands, it formed an alliance to work together, creating
marketing synergy. The object for this is to combine the strength of two brands, in
order to increase the premium consumers are willing to pay, to combine the different
perceived properties associated with these brands with a single product. Ultimately,
co-branding helps both the partners as each contributes some aspect of its brand
(expertise, distribution, status) to create an offering that neither could develop as
effectively on their own.
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In 2000, Hungama ties up with airtel for incentive scheme. With this tie-up,
one can get access to Hungama site anywhere. Airtel Hungama will provide
Franchisee
Distributor
Dealer
Dealers
Customer
Customer
In India, Airtel has one of the largest bouquets of mobile services offerings
for customers - including 2G, 3G, 4G, Mobile Commerce and other Value
Added Services. Its distribution channel is spread across 1.5 Million
outlets, with network presence in 5,121 census and 464,045 non-census
towns and villages in India covering approximately 86.8% of the countrys
population. Airtel has the largest rural mobile customer base in India with
over
100 million mobile customers (from rural markets). Bharti uses the
small retailers and the local shops to retail its recharge coupons to customers. The
company whose operations are concentrated in and around Delhi. It 27 Franchisees
and 15 Distributors- They also have 8 'instant access cash card counters- Each
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franchises or distributor can have any number of dealers under him as long as the
person is approved by the Airtel authority. Each franchise has to invest Rupees Ten
Lakhs. To obtain a franchise and should employ an officer recruited by Airtel. This
person acts as a liaison between the company and the franchises. The franchises can
it any number of dealers as long as their territories do not overlap. But unfortunately
Airtel has not been very successful in controlling territorial overlaps of dealers. The
franchises can carry out his/her own promotional strategy. For this the company
contributes 75% of the money and the franchises contributes 25% of the money. The
dealers under the franchise receive the same commission. The franchises and the
dealer obtain the feedback from the customers and they are sent through the liaison
officer on a day-to-day basis to Airtel. The dealer has to invest Rupees. One Lakh as
an initial investment. The dealer of Airtel are not allowed to provide any other
operators' service. Target set for distributors and the dealers is 100 -150 activations
per month. Hence the dealers can also go for their own promotions like banners and
discounts on festivals etc. The dealer provides service promptly. The consumer on
providing the bill of purchase for the handset and proof of residence has only to wait
an hour before getting connected. The staff of the dealers and the franchisees are
provided training by the Airtel personnel.This significantly reduces costs in terms of
overhead expenses. This distribution strategy has been a success for Bharti and has
enabled the company to improve its penetration and add to its profits as well.
Promotional Strategies
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Airtel spends crores of rupees every year in advertisements in all avenues of mass
communication. While radio happens to be the cheapest means of mass
communication, the most widely mode is that of television. Though advertising on
television is the costliest proponent among all the modes of communication, print
media is also used aggressively by Airtel to serve its purposes.
It creates pervasiveness, allows Airtel to be in the eyes of the consumers all the time.
Even the audience is not obligated to pay heed to the advertisements; the high
creativity quotient of Airtel advertisements makes them virtually impossible to get
unnoticed. Various market experts have rated Airtel Ads very highly on various
parameters.
It also amplifies the message Airtel wants to send to its consumers. The ads score
reasonably well on the imagery and music. In fact, the catch tune of Airtel is one of
the most popular jingles in the Indian ad industry. The genius of the Oscar winning
A.R. Rahman is behind the catchy tune.
The trust factor of Airtel amplifies greatly with the caliber of its brand ambassadors.
The likes of Sachin Tendulkar, Shah Rukh Khan, Kareena Kapoor, Saif Ali Khan,
Vidya Balan, A.R. Rahman have been the brand ambassadors of Airtel at some point
of time or the other.
One of the reasons for the lasting effects of the Airtel ads has been the reinvention of
the content displayed. Airtels campaign strategy is designed keeping in mind its
marketing strategy. The tone, tenor and the stance of the visual ads are designed to
convey the image of a market leader in terms of its market share. It tries to portray
the image of being a "first mover every time" and that of a "market leader".
Most successful AD-COMPAIGNS of Airtel1.
This music went on to become the Airtel Signature Tune. The signature
tune of Airtel is composed by Indian musician A. R. Rahman. One network
that connects India, like A. R Rahman moves India with his music. The tune
became hugely popular and is the world's most downloaded mobile music
with over 150million downloads.
2.
Few relation are very important, they cant be avoided, when relations are
based on love and affections, distance is nothing and conversation is
possible, Keep connected with Airtel
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3.
Communication Boundaries
Express yourself platform making the Barriers break when people talk
is a highly emotional ad campaign connecting people.
Its about Connecting cultures, longing to communicate without any barriers
the society places, making new friends, caring, unity, peace, free
mindedness.
4.
Endless Goodbye
A man and his girl are never apart even after they say goodbye. With
Airtel 3G video calls, you always stay close to your loved ones, no matter
how far you are.
Its about the people who always want to see and talk with each other.
It was nominated as Best Ad in CANNES Festival in 2010.
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5.
Street Performer
6.
The growth of Airtel is related to Shahrukh khan from its No one to someone
to stardom, which is connected to 110 million fans. Unity, togetherness,
networking, Aspiration, chasing the dreams, relationships, success, life is all
about experience.You cannot be alone when 110 million people are
connected with you
7.
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Conclusion
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From this exhaustive study on Bharti Airtel Ltd., we got to learn a lot about how
Airtel Established itself a market leader in the Indian telecom space. The journey was
not a bed of roses for Airtel. They faced numerous stumbling roadblocks along the
way and overcame most of them. This is because they applied and adopted sound
strategies relating to Outsourcing, Marketing, Advertising, creating Customer Value
and Satisfaction, Positioning, etc. The above facts are proved through the survey we
conducted which emphasizes the fact that Airtel continues to be the most preferred
telecom operator in our country, and also amongst the youth.
Even though the growth of the company is stagnating in recent times, and the pressure
from competitors and regulatory bodies is always on the increase, new strategies and
innovations, acquisitions, penetration into international markets better schemes for
customers should ensure that Airtel keeps its nose above its strong competition. The
prospects of Airtel continue to remain strong because it is built around very strong
fundamentals, and this growth should be visible in the near future.
Bibliography
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